Mercedes-Benz has slashed suggested retail prices for select models in China by about 10%, reports Caixin. This comes amid pressure from retailers struggling with widespread losses and mounting inventory in the world’s most competitive auto market.
The adjustment was confirmed by the auto dealers chamber of the All-China Federation of Industry and Commerce. The trade body, which had previously sent three letters to the German automaker regarding excessive inventory and delayed rebates, described the move as a pragmatic step to free up liquidity for dealers, though it said the measures still fell short of fully addressing grievances over the company’s overall business policy.
The price cuts underscore the deepening crisis for traditional luxury automakers in China, where an intensified price war and shifting sales models are eroding the profitability of dealership networks that long served as the backbone of foreign brands’ dominance.